To find the after-tax cost of debt, multiply the before-tax cost of debt by Bedrick Co. can borrow at an interest rate of 11.1% for a period of four years. Its marginal federal-plus-state tax rate is 45%. What is Bedrick's after-tax cost of debt? Bedrick Co. has outstanding 15-year noncallable bonds with a face value of $1,000. These bonds have a current market price of $1, 136.50, a coupon rate of 12%, and annual coupon payments. The company faces a tax rate of 45%. If the company wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt? 5.04% 4.48% 5.60% 6.44%